Performance participation and revenue sharing in an investment management affinity program

Abstract

A data processing system for managing an affinity program for providing financial support payments to a designated beneficiary. The financial support payments are derived from a mutual fund unit holder's investment management activity. The data processing system includes computer processors and electronic storage that store and retrieve affinity program data for a number of mutual fund unit holders. The affinity program data for each holder includes: number of mutual fund units held; current value of each mutual fund unit held; any mutual fund management fee portion dedicated to the beneficiary by the holder; and any mutual fund financial performance portion dedicated to the beneficiary by the holder. The data processing system calculates any finacial support payment in favour of the beneficiary, as selected by the donor/unit holder from two options: (1) the product of multiplying the mutual fund management fee portion dedicated to the beneficiary by the holder by any mutual fund management fee paid by the mutual fund holder; and (2) the product of multiplying the mutual fund financial performance portion dedicated to the beneficiary by the holder by any financial performance paid to the mutual fund holder.

We claim:  
     
         1 . A data processing system for managing an affinity program for providing financial support payments to a designated beneficiary, said financial support payments being derived from a mutual fund unit holder's investment management activity, the system comprising: 
 computer processing means for processing data;    electronic storage means, in communication with the processing means, for storing and retrieving affinity program data for a plurality of mutual fund unit holders, the affinity program data for each holder including: number of mutual fund units held; current value of each mutual fund unit held; any mutual fund management fee portion dedicated to the beneficiary by the holder; and any mutual fund financial performance portion dedicated to the beneficiary by the holder; and    calculating means, in communication with the processing means, for calculating any finacial support payment in favour of the beneficiary, said payment selected from the group consisting of: the product of multiplying the mutual fund management fee portion dedicated to the beneficiary by the holder by any mutual fund management fee paid by the mutual fund holder; and the product of multiplying the mutual fund financial performance portion dedicated to the beneficiary by the holder by any financial performance paid to the mutual fund holder.    
     
     
         2 . A data processing system according to  claim 1  wherein the mutual fund financial performance portion dedicated to the beneficiary by the holder is a fixed percentage of the holder's financial performance.  
     
     
         3 . A data processing system according to  claim 1  wherein the mutual fund financial performance portion dedicated to the beneficiary by the holder is a fixed amount deducted from the holder's financial performance when financial performance exceeds a predetermined minimum amount.  
     
     
         4 . A data processing system according to  claim 1  wherein the mutual fund management fee portion dedicated to the beneficiary by the holder is a fixed percentage of the management fee paid by the mutual fund unit holder.